An Introduction to Technical Analysis/Realtime examples of Analysis

[tech/a]

Thought it better to have the examples in one area so they can be followed and it doesnt clutter up threads on specific topics.---My mistake.

[tech/a]

Update

[ob1kenobi]

Thanks again Tech. There's certainly a lot of thought in these posts! Keep up the good work!

[tech/a]

Dumped PSD at 1c/share loss plus brokerage-----could have been worse.
GCL still holding in.

[RichKid]

Dumped PSD at 1c/share loss plus brokerage-----could have been worse.
GCL still holding in.

tech, about GCL, wouldn't the safer trade have been to wait for a break of the red resistance line? I can see your logic in the triangle breakout though and you can always exit safely with minimal loss. volume is very useful in these situation imo.

[ob1kenobi]

tech, about GCL, wouldn't the safer trade have been to wait for a break of the red resistance line? I can see your logic in the triangle breakout though and you can always exit safely with minimal loss. volume is very useful in these situation imo.

Tech, I had the same question as Richkid did. It looks like the volatility is starting to settle and it may in that process of settling break the red resistance line. Having said that, it may just trade sideways. I think I would let time be my friend on this one.

[tech/a]

Rich.

I didnt buy it for the Triangle breakout.
That came along later.
I bought it at $3.08 on the impulse day.
So the analysis is for whats happening NOW not why I took the trade.

Its certaintly a low probability trade and as Ive stated not a particularly good buy from a technical veiw.We all take trades like that.
Anyway Im in so I,ll trade it for what I can.
FCN was a nice pick up the week before.
I expect to make a profit not win them all.

Incedently I agree with you both it could range.
But it could also breakout to the upside again.
It could also fill the gap and breakdown.
Play it as its presented.

[RichKid]

Rich.

I didnt buy it for the Triangle breakout.
That came along later.
I bought it at $3.08 on the impulse day.
So the analysis is for whats happening NOW not why I took the trade.

Its certaintly a low probability trade and as Ive stated not a particularly good buy from a technical veiw.We all take trades like that.
Anyway Im in so I,ll trade it for what I can.
FCN was a nice pick up the week before.
I expect to make a profit not win them all.

Incedently I agree with you both it could range.
But it could also breakout to the upside again.
It could also fill the gap and breakdown.
Play it as its presented.

Tech,
Okay, makes sense, good to see real time too, it's obviously easier for me to see all this after the fact. What's an impulse day?? I only know a bit about TA so looked for the big trend lines only.

[tech/a]

Tech,
What's an impulse day??

Ill explain it in the BAR analysis thread as its a specific bar.

[tech/a]

GCL very low volume but seeing that there are very few sellers taking higher offers.Slight increase in buyers saw price go a little higher.Raising stop to $3.13 a tick below the top of the triangle resistance.If stopped there will be a profit here plus the gap which has been good support will have been closed.

Just a point about stops demonstrated in the losing PSD trade.

[upitgoes]

Tech/a i'm only new to this forum, it was reading your post that i liked. you are using real charts which is exelent to be able to follow your analysis. It's great help thanks very much appreciated

[tech/a]

Thanks.

I'm just back from Singapore so will return to examples we can all follow as soon as my feet hit the ground.Have a few work matters to attend to.

[tech/a]

I'll start again with a longer term trade example.

[tech/a]

Trade position size and risk details.
Remember this is an exapmle of how I am trading this technically not a recommendation to buy.

[Porper]

Maybe only an example Tech, but a very nice looking chart.

I think one of the things beginners (myself included) find difficult is actually finding stocks with this type of chart.I have tried various combinations, moving average crossovers, volume etc etc in my searches only to have to plough through loads of no hopers to find even one worth looking into closer.

Maybe at a later stage you could give us some help with this

[tech/a]

Porper.

I use a number of different Metastock scans.This came from a New high scan.
Im happy to post the formulas here if anyone has metastock and would find the formulas handy.Certaintly something one should look for in a charting package----the ability to scan for prospects.Saves hrs.

[RichKid]

Could we have a bit of an intro on ledges please? (Different thread if it's worth it, is it a significant pattern??). Is it that last pattern of bars in the ADB set up? Does MRE have one at present? Does it mean buyers are propping upt the price but it's yet to break out, price compressing, kinda like a spring?? Just wondering, one of my weaknesses in analysis are the short term bar set ups that aren't as common as the trinagles and the like. Impulse bars were very interesting, ledges would be nice to know of too. Thanks in advance Tech.

[tech/a]

Could we have a bit of an intro on ledges please? (Different thread if it's worth it, is it a significant pattern??). Is it that last pattern of bars in the ADB set up? Does MRE have one at present? Does it mean buyers are propping upt the price but it's yet to break out, price compressing, kinda like a spring?? Just wondering, one of my weaknesses in analysis are the short term bar set ups that aren't as common as the trinagles and the like. Impulse bars were very interesting, ledges would be nice to know of too. Thanks in advance Tech.

Ill do it under chart patterns although it will be out of sequence,no big deal.

[Porper]

Porper.

I use a number of different Metastock scans.This came from a New high scan.
Im happy to post the formulas here if anyone has metastock and would find the formulas handy.Certaintly something one should look for in a charting package----the ability to scan for prospects.Saves hrs.

Don't have metastock, but use incredible charts pro which has plenty of options for scans, well to me it does.I have just downloaded Amibroker to try for a month before buying, having trouble setting it up, not as user friendly as incredible charts, maybe just me not being a computer wiz.

I for one would be interested in your formulas, as I'm sure others would be too.The one thing I need to do is to back test, at the moment I cannot do this, hence the Amibroker download.

[tech/a]

Well cant see how they will help (As you dont have M/S) but here is the one that picked up ABD.

HHVBars(H,42)=0 AND Fml("liquidity")>500000 AND C>Ref(C,-1) AND Cross(H,Ref(HHV(H,5),-1))

In English.

Highest high for 42 periods is Now---0 and
Liquidity is greater than $500000 and
This close is greater than the last. and
This high is crossing the value of the highest high over the last 5 periods
(To make sure the breakout to a new high is recient).